European stocks rose this week after profit from Tesco Plc and Yara International ASA beat analysts’ estimates and record oil prices boosted energy companies, fueling speculation that earnings could weather an economic slowdown.
Tesco had its biggest weekly gain in six months, leading retailers higher, while Yara paced gains by chemical makers. BP Plc and Royal Dutch Shell Plc led oil shares to a fourth week of gains as crude reached US$116 a barrel. ArcelorMittal, the world’s biggest steelmaker, advanced after saying it will boost prices on some steel shipments in the US.
The Dow Jones STOXX 600 Index added 3.2 percent to 320.69, rebounding from last week’s decline. The gauge has fallen 12 percent this year on concern more than US$245 billion in losses related to the collapse of US subprime mortgages will drag down global economic growth.
“There are signs of some light at the end of the tunnel,” said Richard Hunter, head of UK equities at Hargreaves Lansdown in London. “Tesco reinforced its position with results which confounded its doubters. Oils were also in focus given the strength of the oil price.”
Stocks extended gains on Friday after Citigroup Inc posted a first-quarter loss of US$5.11 billion, less than the most pessimistic analysts’ estimates. Revenue at the biggest US bank by assets exceeded projections.
European companies will probably see their profits shrink for the first time in six years, analysts’ estimates compiled by Bloomberg show. Earnings for companies in the STOXX 600 are predicted to fall 0.46 percent this year, compared with 11 percent growth forecast at the end of last year.
National benchmarks gained in all 18 western European markets this week. Germany’s DAX Index added 3.6 percent, while France’s CAC 40 rallied 3.4 percent. The UK’s FTSE 100 climbed 2.7 percent. The STOXX 50 rose 3.1 percent, while the Euro STOXX 50, a measure for the euro region, increased 2.9 percent.
Tesco jumped 5.8 percent. The UK’s largest retailer said net income climbed 12 percent to £2.1 billion (US$4.2 billion) in the 12 months ended Feb. 23, surpassing the £2.05 billion average of analysts polled by Bloomberg.
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PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
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